Suppose you read in the Wall Street Journal that, during the fourth quarter of 2020, the U.S. economy expanded at the fastest rate in two decades. It follows that one would expect in the unemployment rate and in real GDP during the fourth quarter of 2020. O a. a decrease; a decrease O b. an'increase; an increase a decrease; an increase O d. an increase; a decrease

Q: What occurs in the labor market when the real wage rate is above the full-employment equilibrium…

A: Full employment level is the level at which cyclical unemployment is zero and the unemployment in…

Q: Which of the following will NOT cause inflation to increase in home country? O An increase in the…

A: inflation is the pace of increase in costs over a given timeframe. inflation is normally a wide…

Q: If you lend your friend $100 and receive $105 a year later, while prices have risen by 5%, then you…

A: Given that friend has lent $100 and received $105 a year later. The price level increased by 5%.…

Q: Nominal Year Price level GDP 1982 100 €1,600 1992 150 €3,000 2002 300 €6,000 In the above table,…

A: The nominal GDP increased between 1992-02 from 3000 to 6000 $ Real GDP in 1992 = Nominal GDP / Price…

Q: Recession? O a) rising real estate values O b) a decrease in income tax rates Oc) an increase in…

A: Ans. is option (e) reduced wealth from falling stock prices.

Q: Which of the following does NOT affect potential GDP? O A. the quantity of capital and human capital…

A: Here, option E is correct.  Becuase potential GDP is defined as the maximum output which can be…

Q: Price level (GDP price index, 2012 = 100) Potential ASI GDP AS2 Real GDP (trillions of 2012 dollars)…

A: Potential GDP: - potential GDP is the highest level of gross domestic product that can be achieved…

Q: Price level (GDP price index, 2012 = 100) AD2 AD, AD Real GDP (trillions of 2012 dollars) In the…

A: Aggregate demand curve is a curve between aggregate demand and the price level in an economy.

Q: QUESTION 10 In which of the following cases would real income rise? O a. Nominal income rises by 8…

A: Meaning of Gross Domestic Product (GDP): The term gross domestic product refers to the situation…

Q: In a supply-driven economy, which of the following statements are correct? Select all correct…

A: To find : Correct statement regarding supply driven economy

Q: What is the effect of the bias in the CPI? The bias in the CPI leads to in government outlays and to…

A:

Q: Assume that in most years consumers consume roughly doble amounts of popcorn than potato chips. One…

A: Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: Currently, in the U.S. economy, the largest component on the expenditures side of the GDP equation…

A: The economies tend to work upon the basis of the expenditures done by various entities, and the…

Q: Suppose that the price of bananas rises by 30%. This will have the largest impact on which measure…

A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the…

Q: Which of the following statements are correct? Select one or more: O a. To find GDP at constant…

A: The statement which is true among the options mentioned in the question is :  We know that in order…

Q: Suppose a house is built and sold in the year 2006. If the house is resold in the year 2017, would…

A: Answer- Need to find- Suppose a house is built and sold in the year 2006.If the house is resold in…

Q: When the price level the inflation rate A. rises rapidly; increases O B. falls; is zero O C. rises…

A: The inflation rate is the percentage change in the average level of prices  over a period of time.

Q: ADVANCED ANALYSIS Suppose that the equation for a particular short-run AS curve is P= 30 + 0.5Q,…

A: The LRAS curve is also vertical at the full-employment level of output because this is the amount…

Q: Use the following data to answer this question about the market for milk. Year Price Index for Milk…

A: 1) Assuming 2019 as the base year, the growth in the price index from 2020 to 2021 would be as:…

Q: Which one of the following should we expect in the months to come: O a. Low unemployment and high…

A: The labor force is the summation of employed workers and unemployed workers. The employed workers…

Q: Which of these statements is true about the circular flow of income? O a. Income moves from…

A: Circular flow of income is nothing but the model of economy which shows transactions in the form of…

Q: When inflation occurs, each dollar of income will buy more output than before. O all prices of all…

A: Inflation occurs when there is a rise in the general price level of goods and services.

Q: Which of the following would likely be studied by a macroeconomist rather than a microeconomist? O…

A: When studying macroeconomics concepts, it can be said that these concepts have a significant impact…

Q: Use the table to answer the question 2015 Quantity Price Hotdogs 152 T-shirts 92 26 Toy cars 36 11…

A: In order to find chained-dollar real GDP of 2016 in 2015 dollars, we need to find the following:…

Q: If 2020 is the base year for real GDP calculations, we know for certain that nominal GDP: O A. Is…

A: The gross domestic product (GDP) is the value of the final goods and services produced in an economy…

Q: If deflation is OCcurring and nominal Gross Domestic Product (GDP) is increasing over time, then…

A: GDP is considered an important factor to evaluate the stability, growth, and performance of an…

Q: A period when the economy shrinks is known as Select one: O a. a shump. O b. all of the above. O C.…

A: An economy goes through various phases like boom, recession, trough, and peak. These are based on…

Q: What is the effect of the bias in the CPI? The bias in the CPI leads to in government outlays and to…

A:

Q: For many everyday economic applications, when economists adjust nominal dollar figures for…

A: The Bureau of Labor Statistics (BLS) produces the buyer price level (CPI). it's the foremost…

Q: Which of the following statements are correct? Select one or more: O a. Government spending on goods…

A: GDP The Gross Domestic Product (GDP) basically refers to the sum of all the value added in a given…

Q: Suppose that, as a result of an increase in the price of wheat, several large U.S. grocery chains,…

A: In an economy, the basic difference between CPI and GDP deflator is that the CPI only record price…

Q: According to the textbook, the fully completed house that one could buy from the Sears catalog in…

A:

Q: Which of the following statements are correct? Select one or more: O a. To find GDP at constant…

A: The GDP deflator is a measure of inflation that is a ratio of the value of goods and services of the…

Q: If 1 million people are unemployed and 9 million people are employed what is the unemployment rate?…

A: People who are working or have a job are considered employed and people who are actively looking for…

Q: QUESTION 18 To calculate the CPI, the Bureau of Labor Statistics uses O a. the prices of goods and…

A: In order to measure CPI, a base year a selected and the changes in prices from the base period to…

Q: When economists speak of the CPI bias, they are referring to O A. the tendency for the CPI to…

A: Consumer Price Index shows the weighted average value of a basket of goods. CPI calculated by the…

Q: In the figure, as the price level increases the aggregate demand curve will O A. not shift. O B. not…

A: The curve that depicts the quantities of goods and services being demanded by individuals at various…

Q: Potential GDP is the level of aggregate output Select one: a. that can be sustained in the long run…

A: GDP is the market value of all finished goods and services produced in a domestic country during a…

Q: Economics Use the table to answer the question 2015 Quantity Price Hotdogs 152 2 T-shirts 92 26 Toy…

A: Price of 2016*quantity of 2015=3756

Q: Potential GDP is O a. a measure of the short term fluctuations in real GDP. O b. another name for…

A: Answer to the question is as follows:

Q: When the economy is operating at a point where output is less than the natural level of output,…

A: When the economy is operating at a level that is less than the natural level of output, then the…

Q: Which of the following describes the interest rate on an investment after calculating the impact of…

A: Interest rate is key determinant of investment. The change in the interest rate affects the decision…

Q: Recession is a period during which O A. real GDP grows at a rate less than five percent. O B. real…

A: Business cycle: It is the cycle of fluctuations or variations in the GDP.

Q: If inflation is 4 percent per year and you receive a 3 percent raise in income, then your: a. Real…

A: Nominal wages are the wages received by a worker in the form of money. It is also called Money…

Q: When is a country said to move into a recession? O a. If actual output falls below the potential…

A: The recession is a situation in the economy when the GDP in the economy has stagnated due to fall in…

Q: What likely occurred during 2018 if nominal GDP did not change and real GDP decreased, relative to…

A: Gross Domestic Product denotes the total aggregate output that is produced in the country at a given…

Q: Suppose that the price level in Canada was 100 in 2007, 105 in 2008, 110 in 2009, and 115 in 2010.…

A: Inflation is the rate of increase in prices over a given period of time. here we calculate the given…

Q: If the cost of health and personal care increases by 20 percent, then, other things the same, how…

A: The consumer price index (CPI) basically measure changes in the prices of goods and services…

Q: Using the table above, nominal GDP for Doc's Coffee in 2013 was O $47,000 O $60,000

A: The Nominal GDP is simply calculated by multiplying the production or output with prices of a given…